Georgian central bank decreases refinancing rate to 10.25%
The NBG said annual inflation had dropped to 0.6 percent in June and was aided by a declining trend in prices of oil and raw food commodities on global markets, with international shipping prices also dropping to pre-pandemic levels. Photo: Nino Alavidze/Agenda.ge
Tweet 
Share
The National Bank of Georgia on Wednesday decreased the refinancing rate by 0.25 percentage points to 10.25 percent after monitoring developments in the domestic economy and financial markets.
The NBG said annual inflation had dropped to 0.6 percent in June and was aided by a declining trend in prices of oil and raw food commodities on global markets, with international shipping prices also dropping to pre-pandemic levels.
The strict domestic monetary policy and low inflation expectations allowed for further reduction in inflation, the institution added.
It also said inflation risks remained high despite the “positive dynamics”, noting uncertainty in commodities markets was being worsened by the current “heated geopolitical situation”.
“Along with external risks, domestic economic developments remain noteworthy in terms of inflationary pressure. In particular, economic growth is still high this year, and the NBG has revised its growth forecast up to six percent for 2023”, the Bank added.
“If, due to strong aggregate demand, economic growth turns out to be even higher, additional pressure on inflation will arise. In addition, current trends in the labour market must still be considered. At this stage, wage growth significantly exceeds productivity growth. If sustained for a long time, such a trend will increase production costs and eventually affect prices as well”, it also said.
The next meeting of the Monetary Policy Committee of the Bank is scheduled for September 13.
Maia Omiadze, the head of the Georgian National Tourism Administration, on Tuesday said revenues from international tourism had amounted to a “record-high” $1.8 billion between January and June of this year, claiming numbers for the third quarter would be “even more impressive”.
Commercial banks in Georgia loaned ₾47.33 billion ($18.244 bln) and received deposits of ₾46.79 billion ($18.036 bln) in June, the latest data from the National Bank of Georgia shows.
Georgian recipients received ₾930.6 million ($355.5 mln) in remittances from abroad in June, marking a 16.8% decrease year-on-year, the latest data from the National Bank of Georgia shows.
The current and future economic projects, as well as positive indicators of economic growth in the country, were discussed on Saturday by the Georgian Government’s Economic Council, led by Prime Minister Irakli Garibashvili.
The Georgian economy grew 7.5 percent in April and 7.3 percent in the first four months of 2023, data published by the National Statistics Office of Georgia on Wednesday shows.
The National Bank of Georgia (NBG) has increased the refinancing rate by one percentage point to 9.50% as a result of which loans for about 125,000 borrowers will increase by one per cent, says the non-government organisation Society and Banks.
Georgia received $303.6 million from abroad in July 2023, which is 0.8 less than the amount in July 2022, the National Bank of Georgia said on Tuesday.
Commercial banks in Georgia loaned ₾47.79 billion ($18.138 bln) and received deposits of ₾47.78 billion ($18.134 bln) in July, the latest data from the National Bank of Georgia shows.
Georgia received $283.9 million remittances from abroad in September, with the figure marking a 26.7 percent decrease compared to the same month in 2022, the National Bank of Georgia said on Monday.
The National Bank of Georgia on Wednesday said the inflation rate would remain below 3 percent throughout the rest of the year in the country, stabilise around the number in the following year.
Cost of transport, clothing, footwear, alcoholic beverages and tobacco increased in Georgia to influence the October inflation rate, which posted a 0.6 percent month-on-month increase, the National Statistics Office of Georgia on Friday said.
The National Bank of Georgia on Monday said gradual decreases in international food prices and maintenance of its strict monetary policy had led to a “low” domestic inflation rate.